Indie iPhone Developer Sues Coors for $12.5M

Coors faces a $12.5 million lawsuit for allegedly copying a $3 beer-drinking novelty application that allows users to virtually drink a pint by tilting their iPhone.

Hottrix, a small company that develops "tricks" for mobile devices, filed a lawsuit alleging that Coors commited copyright infringement by copying its iPhone application iBeer. Both Hottrix’s application and Coors’ iPint display the image of a glass of beer on the iPhone’s screen, which is emptied when a user tilts the handset about 90 degrees. Both apps launched in the App Store on July 11 — the major difference being that iBeer cost $3 and iPint was free.

An attorney for the law firm representing Hottrix, Buchalter Nemer, said the smaller company attempted to reach an amicable solution with Coors, without success. Hottrix then complained to Apple, which eventually removed iPint from the App Store in the United States. However, iPint still appears in the App Store in other countries.

"My client … is really a mom-and-pop company who just wants to protect their intellectual property rights," said Jason Fisher, the attorney representing Hottrix.

The removal of iPint exemplifies the limitations of Apple’s popular iPhone App Store as a closed, for-profit marketplace. In August, Apple had to ban NetShare, because the app violated AT&T’s terms-of-service agreement by turning the iPhone into a wireless modem. The removal of iPint in the United
States demonstrates Apple attempting to mediate a legal battle between two companies.

When iPint appeared in the App Store, it quickly climbed into the top 10 most downloaded free applications — essentially hurting iBeer’s sales, Fisher said.
After Apple removed iPint, iBeer made it onto the App
Store’s top 25 most popular paid applications list. It currently sits at No. 22 on that list.

Fisher said that a video demonstrating the accelerometer technique of iBeer appeared on YouTube in August 2007 — even before iPhone’s App Store launched — which may be how Coors latched onto the idea.

The 12-page lawsuit (.pdf) stresses that the iBeer technique was "wholly original … and is copyrightable subject matter." The lawsuit includes two other companies — Beattie McGuinness and DOES 1 to 10 — that handled the marketing for iPint outside of the United States.

"We are confident that we’ve handled this matter appropriately, and will vigorously defend the action," Coors said in a statement.